The lackluster performance announced Tuesday may increase the pressure on Yahoo to sell itself in parts or as a whole.

Yahoo earned $293 million, or 23 cents per share, in the July to September period. That compared with net income of $396 million, or 29 cents per share, at the same time last year. It wasn't an apples-to-apples comparison because of one-time gains in both quarters.

Revenue fell 24 percent from the same time last year to $1.22 billion.

After subtracting ad commissions, Yahoo's revenue stood at $1.07 billion. That was a 5 percent drop from the same time last year.